The microstructures and mechanical properties of cold upsetting magnesium alloys were investigated upon anneal under different conditions. The results show that a large amount of twins were observed in the original grains of cold upsetting AZ31 magnesium alloys. The twins disappeared gradually and recrystal grains formed after anneal. The volume fraction of the recrystal grains increases as the strain of samples rises. Recrystal grain size grows large with the elevated annealing temperature. Recrystal grain size reduces at first and then grows as the annealing time is prolonged. In addition, compared with as-cast magnesium alloys, the yield strength of cold upsetting samples increase apparently due to grain refinement after anneals.